Wire transfer fees: explained

Article summary

Wire transfers can be a quick and easy way to send money to friends and relatives. But they may also involve additional costs, known as wire transfer fees. This amount is usually added to the funds you want to transfer and is to cover the bank releasing or receiving the money.
Wire transfer fees can vary depending on how and where the money is being sent. For example, international wire transfer fees usually cost more than domestic transfers within the US. In some cases, a fee may also apply in order to receive the funds.
In this article, we’ll walk you through the basics of wire transfer fee, including how much they cost and how to save money on future transfers.

In this article

• How much does a wire transfer cost?
• Wire transfer US bank fees
• How to save money on wire transfer fees
• Domestic vs international wire transfer fee
• What do you need to perform a wire transfer?

How much does a wire transfer cost?

Wire transfer fees can vary in the cost. It all depends on the following:

• Are you sending or receiving the money?
• Is it an international or domestic transfer?
• How much money are you sending or receiving?
• What bank are you using?

The amount of money you send can also have an impact, depending on bank policies and services available.

Wire transfer US bank fees

Fees differ from bank to bank, so it’s usually a good idea to check your bank’s transfer fee rates before you commit to making the payment. Your receiver should also find out whether they will need to pay any incoming fees.

You should also discover whether there is a third-party or intermediary bank to help process the transfer, as this can involve an extra charge.

How to save money on wire transfer fees

You don’t have to get caught out by expensive wire transfer fees. Here are a few ways you can cut the costs and save on future money transfers:

• Go online – In-branch transfers or wire transfers by phone can cost you extra sometimes. So, save money and time by doing the transfer yourself online.
• Send in foreign currency – You may find that banks offer lower transfer fees if you convert your US dollars into the destination currency before you send the money.
• Use your existing accounts – Banks often reward loyalty, so check if there are any offers linked to your existing accounts that could reduce your fees. Certain accounts may even be exempt from paying transfer fees altogether.
• Set up recurring transfers – If you regularly send payments to certain family members, it may be cheaper to set up a recurring wire.

Domestic vs international wire transfer fee

You’ll find that domestic transfers within the US tend to be faster and cheaper than international wire payments. This is because international transfers usually involve more steps, systems and parties.

A domestic transfer, meanwhile, can be completed through one payment system, international wire transfers include both a US bank and foreign bank, as well as their individual processing systems. This why fees tend to be slightly higher for international transfers.

What do you need to perform a wire transfer?

What you’ll need to perform your wire transfer may vary depending on the provider you use, but you’ll likely need to provide the following information:

• The amount of money you want to send – in dollars or foreign currency
• You receiver’s first and last name – as written on their government-issued ID
• Your receiver’s country of residence – you may also need to supply their address
• Your receiver’s phone number.

You’ll also need to supply your receiver’s bank details, though the information required may vary depending on whether your wire transfer is being sent within or outside the US:

• Domestic transfer – you should supply the receiver’s bank name, routing number and account number.
• International transfer – you should supply the receiver’s International Bank Account Number (IBAN) and Bank Identifier Code (BIC) or local equivalent.

Once you’ve submitted the wire transfer, the provider will likely contact you with the payment details including payment instructions and a form of tracking number. Depending on your bank, you should be able to pay for your wire transfer online, in-person or over the phone.

Similar blogs

• What is a wire transfer?
• How long do wire transfers take?
• What’s the difference between a wire transfer and a bank transfer?
• How to send money to a bank account

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